Feasibility of Starting a Waterjet Fabrication Plant in Amman, Jordan
Abstract
This project is an attempt to investigate the feasibility of starting a waterjet
fabrication plant in Amman, Jordan to precisely cut marble, granite, and
ceramics. The frame work of the feasibility study included analyzing the
proposed product/service, market size, price and profitability, government
regulations, culture and religion, and business infrastructure in Jordan.
Based on the findings detailed in this field project, it is feasible to start a
waterjet plant operating at full capacity of the waterjet machine to produce
and sell tiles that compete in quality and price with the local products. The
table below shows the three-year operating statement for this new venture. (OMITTED HERE) Expense growth is based on the 2009 inflation rate (1.7%) for Jordan
which is reported by the World Fact Book - managed by the United States
Central Intelligence Agency. In addition, business growth rate is based on
the 2009 GDP growth rate of 3.1% which is reported by the same agency.
Rent and operating expenses are based on responses obtained from
questionnaires and interviews with local tile experts with a minimum of 25
years of experience and exposure to the customer demands for marble,
granite, and ceramics.
Sales estimate are done based on the machine capacity of operating at 22
hours a day with two hours used for maintenance. It was not feasible to
conduct a sales forecast using standard methods due to lack of historical
data. However, during the business planning, a professional sales forecast
should be conducted at full range.
The size of the market in Jordan and the Middle East at large can
support this new venture. According to Jordan Investment Board, there are
new projects in the construction field planned for the next five years
totaling $1.3 trillion dollars. In addition, Jordan has introduced many laws
that protect foreign investments and investors. As a result, many
construction projects such as the $6 billion dollar renovation project in
Abdali are taking off thereby boosting demands for marble, granite, and ceramics. Moreover, Jordan has signed free trade agreements with the
Arab states, the European Union, and the United States of America
thereby opening exports to these countries.
Local and imported marble, granite, and ceramics tiles are commonly
used in the constructions and decorations of buildings in Jordan. Waterjet
cutting technology can be used to capitalize on cutting irregular shapes
from locally produced marble and granite slabs as well as imported ones.
The technology is very precise that it could compete with Spanish and
Italian imported tiles especially that the labor rates in Jordan are five to six
times less than those in Spain and Italy.
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